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Breakouts for Oct 6th: The first pick, CNF, rose on news of a deal with UPS. The stock broke $42.84 resistance on higher volume, which was accompanied by new highs in on balance volume and a move in the MACD trigger line above the bullish zero line. A modest price target is set based on the maturity of the current rally, but there is no overhead resistance to prevent this from moving further. The second pick, HEC, belatedly gained from interest in the energy sector. There was no stock specific news to account for the increase in volume. There remains key resistance levels above and given the degree of movement today, using GTC orders at $0.59 looks a better deal on a risk:reward basis. The MACD trigger line is very bullish, maintaining a 6-month bullish divergence. The breakout in on-balance volume confirms the bulls are in command. This is a beat down stock, so it could take a while before it can challenge its 52-week highs. One for the long term. The third pick, CYTC, won a US defense department contract which helped boost the stock to new highs. Given today's closing price it remains an excellent risk:reward candidate, although the patient may use GTC orders around $25.47 to grab a cheaper fill. Technicals remain firm; with new highs in on balance volume and a MACD over the zero line. Slow stochastics continue to show strong demand for the stock at overbought levels. Strong merits here.

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"IBD" refers to Investors Business Daily